QQQ vs WSO: Correlation
How closely do Invesco QQQ Trust (QQQ) and Watsco, Inc. (WSO) trade together? Their weekly returns over three years give a correlation of 0.43, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QQQ and WSO?
Over the past 3 years, QQQ and WSO moved with a correlation of 0.43, which is moderate. The relationship has been stable: the 1-year correlation (0.34) sits close to the 3-year figure. Over 5 years the correlation is 0.51, and the annualized covariance of weekly returns is 267.0 %².
Among the 4755 assets we track against QQQ, WSO ranks #501 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months QQQ outperformed by 47.1 percentage points (+26.3% for QQQ against -20.8% for WSO). Risk is not evenly split, since WSO carries 1.6 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
QQQ vs WSO: side by side
| QQQ (Invesco QQQ Trust) | WSO (Watsco, Inc.) | |
|---|---|---|
| 1-year return | +26.3% | -20.8% |
| 5-year return | +95.4% | +28.2% |
| Volatility (ann.) | 19.6% | 31.9% |
| Beta vs S&P 500 | 1.28 | 1.05 |
| Max drawdown (3Y) | -22.8% | -44.1% |
| Market cap | – | $12.9B |
| P/E (trailing) | – | 27.0 |
| Dividend yield | 0.44% | 3.91% |
| Expense ratio | 0.18% | – |
| Assets under management | $452.8B | – |
| Sector / category | ETF · US Growth & Tech | US Listed |
On the fund side, QQQ sits in the Large Growth category at Invesco, with $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | QQQ | WSO |
|---|---|---|
| 2022 | -32.6% | -17.7% |
| 2023 | +54.9% | +77.0% |
| 2024 | +25.6% | +13.2% |
| 2025 | +20.8% | -27.0% |
| 2026 | +17.7% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QQQ and WSO good diversifiers for each other?
Reasonably. At 0.43, QQQ and WSO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between QQQ and WSO?
As of 2026-08-27, the correlation of weekly returns between QQQ and WSO is 0.43 over 3 years, 0.34 over 1 year and 0.51 over 5 years.
Is WSO a good diversifier for QQQ?
Reasonably. At 0.43, QQQ and WSO keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.43 mean?
A reading of 0.43 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: QQQ correlations · WSO correlations
